IMF urges BOJ to wind down monetary easing, gradually raise rates


The International Monetary Fund on Friday urged the Bank of Japan to end its yield cap program and other unprecedented monetary easing steps while gradually raising interest rates as a result of the country’s improving inflation outlook.

In normalizing monetary policy, the BOJ should take a “gradual and well-communicated” approach to anchor market expectations of the shift after a decade of powerful monetary easing that was designed to attain its goal of stable inflation at 2 percent, the IMF said.

BOJ Deputy Governor Shinichi Uchida on Thursday reassured financial markets that monetary condit...

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